The minister said that many people invest even their retirement benefits, received after years of service, in fraudulent investment firms without making proper enquiries. Despite numerous cases of financial fraud coming to light, many continue to fall into such traps without thinking carefully, he said. Chennithala also warned the public to remain vigilant to avoid becoming victims of such scams.

Cyber fraud is also on the rise in the state. During Operation Toofan, police uncovered a cyber fraud network in Thiruvananthapuram that allegedly cheated even people in the United States of crores of rupees. According to official data, cyber fraudsters defrauded people in Kerala of Rs 801 crore between June 2025 and May 2026. A total of 44,653 cybercrime cases were registered during the period. The scams included digital arrest fraud, fake job offers, online trading scams, deepfake fraud, loan app scams and fake prize offers. Most victims were lured through misleading online advertisements. Ernakulam recorded the highest number of cybercrime cases in the state, with 6,862 cases, resulting in losses of Rs 182.51 crore. Of the total Rs 801 crore lost across Kerala, police managed to freeze Rs 185.85 crore through timely intervention.

Officials said cybercrime investigations are more complex than regular criminal cases and often take longer to complete. Therefore, public awareness and caution are the best ways to prevent such fraud. The desire to make quick money is one of the main reasons people fall victim to these scams. Wealth should be earned through legitimate means, and shortcuts often lead to financial losses. Scammers frequently offer instant loans, promising lakhs of rupees with just a single click. Victims often receive messages falsely claiming that their loan has already been approved. Such attractive offers are mostly circulated through mobile phones and appear convincing at first glance.

However, many realise the extent of the fraud only after losing money. Fraudsters also send messages asking for bank account details and other personal information. People should avoid sharing such information and stay alert. Kerala has witnessed several financial scams over the years, including chit fund frauds and scams involving private financial institutions. Despite repeated warnings, many people continue to fall into these traps. Loan app scams, in particular, have become widespread. The government should take stronger action against such frauds and increase public awareness to protect people from cybercriminals.